1. CITY SERVICES INSTITUTE
February 1, 2010
CITY SERVICES INSTITUTE
Department of Financial Services
November 15, 2010
Department of Financial Services

2. INTRODUCTION Barry Atwood – Director of Finance
City Services Institute
February 1, 2010
INTRODUCTION Barry Atwood – Director of Finance
Appointed as Director in December 2007
Government experience – same position at
Fort Lauderdale-Hollywood Int’l Airport
South Florida Water Management District
Prince William County, VA
Gainesville, FL
Consultant to local governments
Partner with KPMG (CPA – Consulting Firm) 2
Department of Financial Services

3. City Services Institute
October 12, 2009
CLASS OBJECTIVES
Provide a brief overview of the Financial Services Department responsibilities
Provide an opportunity to improve your understanding of City finances to answer –
How are finances of the City structured?
How are public services financed?
How are tax rates calculated? 3
Department of Financial Services

4. CLASS GUIDELINES
First, we’ll give a brief outline of the department’s responsibilities Most of which are internal to other departments
Majority of time spent on improving your understanding City finances and budgets
You may ask questions as the class progresses rather than waiting until the end 4

5. DEPARTMENT RESPONSIBILITIES
Listed in order of the “business cycle”
Budgeting
Purchasing
Warehousing
Collecting Revenues
Disbursing Expenditures
Investing Cash / Managing Debt
Accounting 5

6. City Services Institute
October 12, 2009
BUDGETING
Participating in Budget Development (Operating & Capital)
Calculating the Ad Valorem Tax Rate
Monitoring the Budget During the Fiscal Year (October 1 – September 30)
Reporting Budget Status 6
Department of Financial Services

7. PURCHASING Recommending Policy & Procedures
Controlling/Processing City-wide Purchases
Advertising Competitive Purchases
Coordinating Selection of Vendors 7

8. WAREHOUSING Stocking Items Purchased Via Consolidated Buying
Receiving & Delivering All Merchandise to Departments
Maintaining All Historical City Records Prior to Authorized Destruction
Coordinating the Receipt & Transfer of All Surplus Items For Sale 8

9. COLLECTING REVENUES Receiving and Safeguarding Receipts
Depositing All Monies Received
Providing Proper Revenue Accounting
Monitoring Estimated Budgeted Revenues 9

10. DISBURSING EXPENDITURES
Receiving All Invoices for Payment
Disbursing Funds to All Vendors
Disbursing Payroll to Employees
Providing Accounting For Expenditures 10

11. INVESTING CASH MONITORING DEBT
Monitoring Cash Flow Requirements
Investing Funds According to Established Investment Policy
Participating in the Issuance of Debt
Monitoring Debt Compliance Requirements 11

12. ACCOUNTING
Making & Reconciling All Accounting Entries For All City Funds
Accounting & Inventorying Capital Assets
Developing & Monitoring Internal Financial Controls
Preparing Monthly & Annual Financial Reports of the City 12

13. FINANCIAL SERVICES ORGANIZATION - 20 STAFF MEMBERS
Operate in 5 Sections Each With Multiple Functional Responsibilities
Purchasing
Warehousing
Accounting
Budgeting
Revenue 13

14. STRUCTURE OF CITY FINANCES
Organized in a “fund” structure based on –
City operations
External restrictions
Governmental accounting requirements 14

15. STRUCTURE OF CITY FINANCES
The City has 24 funds grouped into two broad activity types -
Governmental activities includes General Fund
Business activities includes Utilities Fund 15

16. STRUCTURE OF CITY FINANCES
Governmental activities are those funds financed with
Taxes and other revenues, such as
General Fund
Fire Assessment Fund
Debt Service (Public Service Taxes) Fund 16

17. STRUCTURE OF CITY FINANCES
Business-type activities are those funds financed with
Fees charged to external parties such as
Water & Sewer Utility Fund
Solid Waste Fund
Golf Course Fund 17

18. Citywide Total Budget = $174
Citywide Total Budget = $174.5 M - All Funds General Fund = 39% / Utility Fund = 18% / Capital Funds = 19%
FY Budget Overview

19. Police & Fire = $45.4 M or 66% of Total $68.5 M General Fund Budget
FY Budget Overview

20. Personnel Services = $55. 9 M or 82% of Total $68
Personnel Services = $55.9 M or 82% of Total $68.5 M General Fund Budget
FY Budget Overview

21. 2011 Citywide Funding = $174.5 M - All Funds Utility Fees = 18% / Transfers = 15% / Property Taxes = 13%
FY Budget Overview

22. Total General Fund Sources = $68. 5 M Transfers $27
Total General Fund Sources = $68.5 M Transfers $27.0 M = 39% / Property Taxes $22.2 M = 32%
FY Budget Overview

23. Millage & Property Taxes Levied FY 2004/05 to FY 2010/11($ Million)
FY Budget Overview

24. General Fund Revenues Increased Only $4. 9 M (15
General Fund Revenues Increased Only $4.9 M (15.15%) While Net Property Taxes Decreased $1.5 M (6.46%) In 7-Year Period (FY 2004/2005 to FY 2010/2011)
Source of Funds
FY 2004/2005
FY 2010/2011 %
Actual
Budget
Change
Property Taxes
$ 26,125,055
$ 25,507,000
-2.37%
CRA TIF
$ (2,419,760)
$ (3,334,000)
37.78%
Net Property Taxes
$ 23,705,295
$ 22,173,000
-6.46%
Other Taxes
$ 3,625,269
$ 5,024,575
38.60%
Licenses & Permits
$ 8,202,387
$ 1,976,000
-75.91%
Intergovernmental
$ 8,589,609
$ 6,513,000
-24.18%
Charges for Services
$ 3,930,084
$ 4,427,000
12.64%
Other Revenues
$ 1,214,244
$ 1,388,937
14.39%
Transfers
$ 10,263,266
$ 27,048,334
163.55%
Total
$ 59,530,154
$ 68,550,846
15.15%

25. PROPERTY TAX PAYMENTS Paid to Palm Beach County Tax Collector
Early Payment Discounts
4% November
3% December
2% January
1% February
Taxes Due – By March 31
Taxes Delinquent – April 1 25

26. PROPERTY TAXES (General Fund Only) WHAT DERTERMINES THE RATE?
Total budgeted expenditures
Less non property tax revenues
Equals amount to raise by property taxes
Divided by per $1,000 of taxable property
Equals tax (millage) rate per $1,000 of taxable property value 26

27. UNDERSTANDING TAXABLE VALUES, TAX RATE CHANGES & RESULTING TAXES LEVIED USING 2008 VS. 2009
Citywide taxable values – 15.6% decline
2008 = $4,584,615,400
2009 = $3,870,129,870
Tax rates – 18.5% increase
2008 = levied rate
2009 = rolled back rate
Equal property taxes levied – 0% change
2008 = $29,800,000
2009 = $29,800,000 27

28. WHAT IS THE ROLLED-BACK RATE?
The calculated tax rate When applied to the City’s total taxable valuation, Levies the same amount of property taxes as in the prior year. 28

29. 2008 vs. 2009 WHAT’S THE NEWS HEADLINE?29

30. TAX RATE IMPACT ON INDIVIDUAL PROPERTIES
A tax rate increase is not always a property tax increase
Likewise . . .
A tax rate decrease is not always a property tax decrease 30

31. ASSESSED VALUE DECREASED 15. 6% TAX RATE INCREASED 18
ASSESSED VALUE DECREASED 15.6% TAX RATE INCREASED 18.5% PROPERTY TAX – NO CHANGE 31

32. ASSESSED VALUE DECREASED 11. 7% TAX RATE INCREASED 18
ASSESSED VALUE DECREASED 11.7% TAX RATE INCREASED 18.5% PROPERTY TAX – NO CHANGE 32

33. ASSESSED VALUE DECREASED 15. 6% TAX RATE INCREASED 18
ASSESSED VALUE DECREASED 15.6% TAX RATE INCREASED 18.5% PROPERTY TAX – DECREASED 6.2% 33

34. ASSESSED VALUE INCREASED 0. 1% (COLA) TAX RATE INCREASED 18
ASSESSED VALUE INCREASED 0.1% (COLA) TAX RATE INCREASED 18.5% PROPERTY TAX – INCREASED 18.6% 34

35. BOYNTON BEACH GENERAL FUND TAX RATE LAST 10 FISCAL YEARS
2002 –
2003 –
2004 –
2005 –
2006 –
2007 –
2008 –
2009 –
2010 –
2011 –
Maximum Millage Rate = Per Florida Statute 35